An analyst told Decrypt that the market is fully betting on the approval of an XRP ETF and a less confrontational approach from the SEC.
XRP, the cryptocurrency associated with Ripple, is witnessing a notable price increase, having risen by 7% in the past 24 hours and around 23% over the last week, according to CoinMarketCap. Analysts attribute this upward trend to growing speculation regarding the anticipated approval of an XRP exchange-traded fund (ETF), which many in the trading community now view as imminent. Over the years, XRP’s price has experienced considerable volatility, primarily due to its protracted legal issues with the U.S. Securities and Exchange Commission (SEC). Nevertheless, the token’s value has been on the rise, driven by hopes for a favorable resolution to these legal matters.
The recent uptrend in XRP began following the 2024 U.S. presidential election, where Republican candidate Donald Trump emerged victorious. A significant element impacting XRP’s pricing is the ongoing legal battle between Ripple and the SEC, initiated in 2020 when the latter alleged that Ripple’s XRP sales constituted unregistered securities offerings. However, a judge recently ruled in Ripple’s favor, asserting that XRP sales to retail investors did not violate securities laws, marking a key victory that could lead to a more positive regulatory environment for the token. Despite this progress, the SEC has appealed the decision, maintaining legal uncertainty for XRP.
Pav Hundal, the head analyst at Australian crypto exchange Swyftx, indicated that the market is largely banking on the approval of an XRP ETF and a potentially friendlier approach from the SEC. Hundal noted a shift in trading patterns, with capital moving from larger cryptocurrencies like Solana (SOL), Ethereum (ETH), and Dogecoin (DOGE) to XRP. He reported that global trading volumes for XRP have increased significantly, rising thirteenfold compared to the previous week, and pointed out a strong demand for XRP, with a scarcity of sellers, which could lead to further price increases soon.
Market analysts believe that XRP could experience additional price hikes if it surpasses crucial resistance levels. Ryan Lee, chief analyst at Bitget Research, forecasts that XRP might climb as high as $0.86 by year-end. Currently, XRP’s price fluctuates between $0.60 and $0.70, with analysts suggesting that breaking the $0.68 resistance could facilitate further gains.
The optimism surrounding XRP has also intensified with the announcement that 21Shares, a prominent cryptocurrency ETF issuer, has submitted an S-1 form to the SEC to establish an XRP ETF. If sanctioned, the 21Shares Core XRP Trust would mirror XRP’s price movement, enabling U.S. investors to engage with the token through shares that are traded daily. 21Shares has reaffirmed its dedication to enhancing cryptocurrency accessibility for U.S. investors, contributing to the growing optimism regarding XRP’s prospects.
This hopeful sentiment is linked to potential shifts in U.S. politics. Following Trump’s election, many traders are optimistic that the SEC will relax its regulatory grip on XRP. Trump has expressed intent to “fire Gary Gensler on day one,” referring to the SEC chairman who has been prominent in the agency’s regulatory efforts against cryptocurrencies. While Trump cannot directly dismiss Gensler, analysts speculate he might resign voluntarily within six months due to the political changes. A new SEC chair, likely appointed by Trump, might adopt a more favorable stance towards Ripple and reduce aggressive enforcement against the company.
Legal experts like attorney Jeremy Hogan suggest that the SEC might eventually drop its case against Ripple, potentially settling regarding the already awarded $125 million judgment. Hogan posits that under new SEC leadership, there may be a focus on resolving or dismissing non-fraudulent crypto cases, which could culminate in a resolution of Ripple’s extended legal struggles by summer 2024. Such a settlement could significantly reduce regulatory ambiguity for Ripple and XRP, possibly leading to greater price increases and wider adoption of the token.
Edited by OracleEmpire